CLP India Pvt. Ltd, one of the largest foreign investors in India’s power sector, has acquired a 49% equity stake in SE Solar, a solar power project of wind turbine maker Suzlon Energy Ltd, for Rs 73.5 crore, as per a stock market disclosure.

SE Solar is building a 100 megawatt (MW) solar energy plant at Ventoor in Telangana. The plant is part of a 210 MW project for which Suzlon received letters of interest in January and has signed long-term power purchase agreements (PPAs) with state utilities.

Suzlon will still build the project on an engineering, construction and procurement (EPC) basis and hold a 51% stake for a year from day when commercial operations begins, as mandated by the PPA.

As part of the deal, CLP will have the option to acquire the remaining 51% stake in SE Power after a year, as allowed under PPA, the statement said.

The project is expected to be commissioned by May 2017 with 80% of debt and 20% equity. The net worth of SE Solar as on 31 March is Rs 30 crore, the statement said.

CLP India is a wholly-owned subsidiary of CLP Holdings Ltd which is listed on the Hong Kong Stock Exchange and is one of the leading investor-owned businesses in Asia.

CLP is one of the largest foreign investors in Indian power sector with a total committed investment of over Rs 14,000 crore. CLP entered the country in 2002 with the acquisition of a 655 MW gas fired power plant in Bharuch, Gujarat.

It is planning to invest about $1 billion for setting up over 1 gigawatt (GW) of solar power capacity within five years. India aims to set up 100 GW of solar capacity and 60 GW of wind capacity by 2022.